When Hard Capital Rationing Exists,projects May Be Accurately Evaluated by Use

question 61

Multiple Choice

When hard capital rationing exists,projects may be accurately evaluated by use of:

• A) payback period.
• B) mutually exclusive IRRs.
• C) a profitability index.
• D)borrowing, rather than lending, projects.

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Definitions:

Mean

The mean is the arithmetic average of a set of numbers, calculated by dividing the sum of all values by the count of the values.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.

Confidence Interval

A confidence interval provides a range of values that likely contain the true value of an unknown population parameter, with a certain level of confidence.

Mean

The average of a set of numbers, calculated by adding them together and dividing by the number of values.